Purchase Journal - Case Study Example

Running Head: Purchase Journal Purchase Journal Purchase Journal ParticularDebit AmountCredit Amount1st August, 2011Salary AccountTo Cash AccountSalary is drawn and deposited in the form of cash in hand$ 5000$ 50002nd AugustPurchases AccountTo Cash AccountPurchased an Old Spice after shave lotion$100$1004th AugustPurchases AccountTo Cash AccountPurchased a Denim shirt$150$1506th AugustPurchases AccountTo Cash AccountPurchased a Flying Machine T-shirt for $200, a second hand iPhone for $500, a local maker perfume for $150, and a Rayban sunglass for $150$1000$1000Carried AheadBrought ForwardDateParticularDebit AmountCredit Amount7th AugustPurchases AccountTo Cash AccountBought milk powder, flour, fruits, and vegetables from the local departmental store$500$500Influences behind the Purchases There is a prime focus on and a prominent tendency to buy expansive branded goods.

This may be so due to the effect of the aggressive marketing and advertising campaigns by the multinational companies. In the age of globalization, tendency to buy branded goods can be regarded as natural to some extends. The degree of economic consumption depends on the buying power of an individual in a capitalist society. This journal shows considerable buying power. However, the use of this power is not planned. The goods have been bought somewhat abruptly. The journal doesn’t reflect a planned shopping or a tendency to take benefit from discounts.

Consequences of the Purchases Less attention on the goods and products needed for daily use. This creates pressure on the budget and sometimes the expenditure is not well planned. If goods for day to day use are not bought regularly and in a planned way, serious problems in consumption patterns may arise. The individual has spending power, but he is reluctant to buy the food products, fruits, vegetables, detergent, etc. This may give rise to health and hygiene problems. In the case too much money is spent to buy branded goods, there will be no funds left for medical emergencies, sudden price hike, etc.

The expenditure is already high, so funds are being exhausted rapidly.Prospective Alteration in Purchase Patterns It is necessary to revise the present purchase pattern. If the present purchase pattern is maintained, it will simply lead to financial mismanagement. However, the problem appears to be at a preliminary state. There is too much tendency of buying expensive, branded goods (this tendency can be checked, of course). No plan for significant savings discernable. More attention is needed on the daily expenses.

The daily expenses must be focused to obtain a quality diet. Bank deposits or suitable investments at small scale are a good savings option. There should be more planning for a more economic living. The plans may include proper fund allocation, stoppage of buying expensive and sometimes unnecessary goods, investment in saving scheme, etc.